Meikles eyes banking licence

picknpayTanganda, TM Supermarkets to be floated?
HARARE - Wealth and diversified Meikles Africa Limited (MAL) is considering using the $22,5 million it is owed by the Reserve Bank of Zimbabwe (RBZ) to secure a banking licence, insiders say.

The money was given to the RBZ for “safe-keeping” during the days of hyperinflation. Meikles has already had flirtations with financial entities such as Kingdom Bank Limited and TN Bank Limited. Stockbrokers say while last year’s financial performance at Meikles was “negatively impacted by shareholder squabbles”, the giant still retains “some attributes that analysts generally look for in recommending equity investments in Zimbabwe”.

These include a solid balance sheet, defensive operating divisions and strong growth prospects. A stock market analyst told The Zimbabwean **** this week that Meikles was venturing into asset finance and could float some of its subsidiaries on the Zimbabwe Stock Exchange.

The subsidiaries include Tanganda Tea Limited, TM Supermarkets and Pick n Pay.

Meikles has a market capitalisation of $46,2 million, having off-loaded Kingdom Financial Holdings Limited due to boardroom differences between tycoon Nigel Chanakira and the Meikles boss, John Moxon.

“Thereafter, the Group will look to partner with a large investment group so as to offer asset finance services on a larger scale. Management is also considering floating some of the subsidiaries on the ZSE. Before, the merger, KFHL and Tanaganda Tea Company, were listed separately on the ZSE,” said the analyst.

“Based on our sum of parts valuation for Meikles, we value the Group at $0,84 per share. Therefore, the current price presents an opportunity for investors.”

Meanwhile, KFHL says it is seeking to bounce back on the bourse during the fourth quarter of this year, according to Chanakira.

Post published in: Economy

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